Small Car Alliance Announced By Daimler, Nissan and Renault

In a joint announcement on 7th April 2010, three major automobile companies have come forward with a strategic alliance to develop small cars. This alliance is formed by Daimler, Nissan and Renault together. The three auto giants will work together for cutting costs by sharing small car technologies with each other, including engine technologies, power-train, etc.

All these auto majors are getting hit by low sales and high operating and research costs and finding it difficult to compete with other more competitive global players like Toyota and Volkswagen.

The target of this collaboration will be to reduce carbon emission and develop cars which are more compact and energy efficient compared to the existing lineup of cars.

This alliance will develop next generation Smart cars by Daimler with engine from Nissan-Renault. Also Daimler will provide engines for Nissan Infinity lineup, and Nissan and Renault will provide drive-train and Engine for Mercedes Benz Vito van.

This alliance will also work together on electric cars for more eco-friendly options. Nissan and Renault are already working towards that in their research centers. So this alliance is a win-win situation for all three companies involved.

This move will cut operational, research and development costs across components and technologies, in the competitive market scenario and a shift towards going green, such alliances to save the economy and ecology at the same time are highly welcome.